Iran Passes a Law Allowing the Use of Cryptocurrency for Imports

Iran has approved the use of digital assets for imports after the country’s parliament enacted a measure that authorized the use of cryptocurrencies in commercial transactions.

Earlier this month, Iran announced that it had successfully executed its first crypto-based order, valued at 10 million USD. At the time, the Ministry of Industry, Mines and Trade of the nation said they would greatly extend the usage of cryptocurrencies for import by the month’s end.

According to the Iranian news outlet Tasnim, which cited Minister of Industry, Mines, and Trade Reza Fatemi Amin, the law redefines restrictions on cryptocurrencies, the authority to use cryptocurrencies for imports, and the provision of fuel and power for mining.

Additionally, the Central Bank of Iran has given its approval for the processing of imports using various cryptocurrencies. According to the article, individuals may now even import vehicles using digital assets rather than traditional currencies such as U.S. dollars or euros.

The Impact of U.S. Sanctions Will Be Mitigated By Cryptocurrencies

As of March of this year, Iran was the nation subject to the most international sanctions. However, this position was taken away from the nation when the United States of America and its allies launched several sanctions against Russia in response to its invasion of Ukraine.

The United States of America started the month of July by announcing a fresh set of sanctions targeting Iran’s oil industry. Iran’s crypto steps came at the same time.

It is widely believed that Iran is attempting to avoid complying with U.S. sanctions and break trade embargoes by using cryptocurrency.

Legislators in the United States have lately voiced their worry about the use of cryptocurrency as a means to circumvent sanctions, highlighting the likelihood that severely sanctioned Russian businesses might be utilizing cryptocurrency to lessen the effect of the penalties.